Akasa Air, India’s low-cost carrier, is currently struggling with operational hurdles caused by delays in the delivery of Boeing’s 737 MAX aircraft, which are impacting the airline’s expansion plans and leaving many pilots without work.
The delays are partly due to regulatory scrutiny following a turbulent last year and a recent workers’ strike at Boeing.
Akasa, which was initiated with support from the late Indian billionaire Rakesh Jhunjhunwala, commenced operations nearly three years ago. It has continued to expand, including launching international routes.
The airline also secured new capital from Indian billionaire Azim Premji’s investment arm and Jhunjhunwala’s family.
The Mumbai-based airline has a modest fleet of 27 planes but has placed orders for 226 Boeing 737 MAX jets including 150 ordered in January 2024, at the WINGS India civil aviation conference.
The order includes both MAX 10 and MAX 8-200 models, with deliveries scheduled through 2032.
However, with 310 of its 775 pilots currently grounded, Akasa faces the challenge of utilising its pilot workforce effectively.
Akasa CEO Vinay said: “We just don’t have enough aircraft to fly … nobody wants to sit at home and twiddle their thumbs.”
The airline maintains it is in “continuous discussions with Boeing” and supports the manufacturer’s efforts to improve quality and efficiency.
Akasa has suggested that most of the idle pilots will be flying by the end of 2025, but details on how this will be achieved remain unclear.
Starair Consulting chairman Harsh Vardhan recommends that Akasa reassess its pilot numbers and consider downsizing if necessary.
The airline, however, maintains that it offers career advancement opportunities for its pilots.
Akasa’s revenue quadrupled to $356m last year, although losses widened to $194m from $86m.
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
